Service tax liability

If your customers are registered under Excise you are eligible for exemption from payment of excise duty. However if your customers are not registered under excise then you have to charge service tax on your labour charges. But even in case of such customer you can claim exemption up to Rs. 10 lakh. After your labour charges exceed 10 lakh you have to charge & collect service tax on each bill raised on non-excise registered dealers